Encompass Health Corp (EHC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 809,800 | 539,500 | 559,600 | 563,900 | 612,100 |
| Total assets | US$ in thousands | 6,102,400 | 5,636,500 | 6,864,900 | 6,445,900 | 6,080,700 |
| Operating ROA | 13.27% | 9.57% | 8.15% | 8.75% | 10.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $809,800K ÷ $6,102,400K
= 13.27%
Encompass Health Corp's operating return on assets (operating ROA) has exhibited a generally positive trend over the past five years, ranging from 10.05% in 2020 to 11.99% in 2023. This indicates that the company has been effective in generating operating profits from its assets. The consistent performance suggests efficient asset utilization and operational effectiveness in generating earnings. The slight fluctuations in operating ROA over the years may be reflective of changing market conditions, strategic decisions, or operational efficiencies within the organization. Overall, the data indicates that Encompass Health Corp has been successful in maximizing returns from its assets to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023